Americans are living longer, a blessing that comes with increased expenses to fund lengthy golden years. According to the U.S. Census Bureau, average life expectancy in the U.S. has now climbed to 78.8 years. As a result, putting enough away in savings to last a lifetime has proven to be a much harder task. With post-working years lasting longer than ever, many are struggling to make ends-meet, especially with the growing costs of the necessary health care in retirement.
The traditional methods of retirement income, such as social security and pensions are proving inadequate to meet the needs of America's retirees. The National Reverse Mortgage Association states that a growing number of homeowners over 62 are turning to reverse mortgage programs to fund their longevity.
Reverse mortgages eliminate monthly mortgage payments while allowing borrowers to receive supplemental income in the form of a lump sum, monthly payment or a line of credit which can continue to grow over time.
Meanwhile, conventional conforming no-point 30-year fixed rates are averaging 4.25 percent while the 15-year rates are near 3.50 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.